Unum Group
For the period ended Jun 30, 2025. Filed Jul 30, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Jul 30, 2025
Contents
Unum US Segment
The Unum US segment is comprised of the group disability, group life and accidental death and dismemberment, and supplemental and voluntary lines of business. The group disability line of business includes long-term and short-term disability, medical stop-loss, and fee-based service products. The supplemental and voluntary line of business includes voluntary benefits, individual disability, and dental and vision products. These products, excluding medical stop-loss which is no longer actively marketed as of the third quarter of 2024, are marketed through our field sales personnel who work in conjunction with independent brokers and consultants.
Unum US Operating Results
Shown below are financial results for the Unum US segment. In the sections following, financial results and key ratios are also presented for the major lines of business within the segment.
| (in millions of dollars, except ratios) | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Three Months Ended June 30 · Six Months Ended June 30 | |||||||||
| 2025 · % Change · 2024 · 2025 · % Change · 2024 | |||||||||
| Adjusted Operating Revenue | |||||||||
| Premium Income | $1,798.6 | 3.9% | $1,730.9 | $3,579.5 | 4.1% | $3,438.3 | |||
| Net Investment Income | 155.1 | (1.9) | 158.1 | 304.0 | (3.5) | 315.1 | |||
| Other Income | 58.0 | (0.3) | 58.2 | 129.9 | 9.3 | 118.8 | |||
| Total | 2,011.7 | 3.3 | 1,947.2 | 4,013.4 | 3.6 | 3,872.2 | |||
| Benefits and Expenses | |||||||||
| Policy Benefits | 1,110.9 | 2.9 | 1,079.5 | 2,249.5 | 4.1 | 2,161.2 | |||
| Policy Benefits - Remeasurement Gain | (18.7) | (74.3) | (72.9) | (94.1) | (49.2) | (185.3) | |||
| Commissions | 203.8 | 8.9 | 187.1 | 409.4 | 10.9 | 369.3 | |||
| Deferral of Acquisition Costs | (85.7) | 3.9 | (82.5) | (170.4) | 2.8 | (165.8) | |||
| Amortization of Deferred Acquisition Costs | 71.6 | 0.6 | 71.2 | 136.8 | (3.0) | 141.0 | |||
| Other Expenses | 411.6 | 1.1 | 407.3 | 834.9 | 3.2 | 809.1 | |||
| Total | 1,693.5 | 6.5 | 1,589.7 | 3,366.1 | 7.6 | 3,129.5 | |||
| Adjusted Operating Income | $318.2 | (11.0) | $357.5 | $647.3 | (12.8) | $742.7 | |||
| Operating Ratios (% of Premium Income): | |||||||||
| Benefit Ratio | 60.7% | 58.2% | 60.2% | 57.5% | |||||
| Other Expense Ratio1 | 22.2% | 22.8% | 22.6% | 22.8% | |||||
| Adjusted Operating Income Ratio | 17.7% | 20.7% | 18.1% | 21.6% | |||||
| 1Ratio of Other Expenses to Premium Income plus Unum US Group Disability Other Income, which is primarily related to fee-based services. | |||||||||
Unum US Group Disability Operating Results
Shown below are financial results and key performance indicators for Unum US group disability.
| (in millions of dollars, except ratios) | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Three Months Ended June 30 · Six Months Ended June 30 | ||||||||||
| 2025 · % Change · 2024 · 2025 · % Change · 2024 | ||||||||||
| Adjusted Operating Revenue | ||||||||||
| Premium Income | ||||||||||
| Group Long-term Disability | $507.8 | (2.6)% | $521.5 | $1,012.3 | (2.5)% | $1,038.2 | ||||
| Group Short-term Disability | 289.3 | 4.7 | 276.3 | 567.6 | 5.2 | 539.4 | ||||
| Total Premium Income | 797.1 | (0.1) | 797.8 | 1,579.9 | 0.1 | 1,577.6 | ||||
| Net Investment Income | 74.5 | (4.9) | 78.3 | 148.5 | (4.9) | 156.1 | ||||
| Other Income | 56.6 | (1.6) | 57.5 | 112.6 | (3.1) | 116.2 | ||||
| Total | 928.2 | (0.6) | 933.6 | 1,841.0 | (0.5) | 1,849.9 | ||||
| Benefits and Expenses | ||||||||||
| Policy Benefits | 514.6 | (1.0) | 519.7 | 1,043.5 | 0.2 | 1,041.3 | ||||
| Policy Benefits - Remeasurement Gain | (18.5) | (61.5) | (48.0) | (63.7) | (47.4) | (121.0) | ||||
| Commissions | 63.9 | 2.6 | 62.3 | 128.9 | 3.9 | 124.1 | ||||
| Deferral of Acquisition Costs | (16.2) | — | (16.2) | (32.3) | (1.2) | (32.7) | ||||
| Amortization of Deferred Acquisition Costs | 15.7 | 10.6 | 14.2 | 26.1 | (8.7) | 28.6 | ||||
| Other Expenses | 243.9 | (1.8) | 248.4 | 494.5 | 0.6 | 491.6 | ||||
| Total | 803.4 | 2.9 | 780.4 | 1,597.0 | 4.2 | 1,531.9 | ||||
| Adjusted Operating Income | $124.8 | (18.5) | $153.2 | $244.0 | (23.3) | $318.0 | ||||
| Operating Ratios (% of Premium Income): | ||||||||||
| Benefit Ratio | 62.2% | 59.1% | 62.0% | 58.3% | ||||||
| Other Expense Ratio1 | 28.6% | 29.0% | 29.2% | 29.0% | ||||||
| Adjusted Operating Income Ratio | 15.7% | 19.2% | 15.4% | 20.2% | ||||||
| Persistency: | ||||||||||
| Group Long-term Disability | 90.6% | 93.1% | ||||||||
| Group Short-term Disability | 88.2% | 91.8% | ||||||||
| 1Ratio of Other Expenses to Premium Income plus Other Income, which is primarily related to fee-based services. | ||||||||||
Premium income was consistent in the second quarter and first six months of 2025 compared to the same periods of 2024 due to the expected decline in medical stop-loss premium and lower persistency, mostly offset by an increase in premium income due to prior period sales. Net investment income was lower in the second quarter and first six months of 2025 compared to the same periods of 2024 due to a lower level of invested assets. Other income was generally consistent in the second quarter and first six months of 2025 compared to the same periods of 2024.
The benefit ratio was unfavorable in the second quarter and first six months of 2025 compared to the same periods of 2024 due to lower recoveries in our long-term disability product line and higher average claims size in our short-term disability product line. Also contributing to the unfavorable benefit ratio in the first six months of 2025 compared to the same period of 2024 was higher incidence in our long-term disability product line.
Commissions were higher in the second quarter and first six months of 2025 compared to the same periods of 2024 due primarily to prior period sales. The deferral of acquisition costs were generally consistent in the second quarter and first six months of 2025 compared to the same periods of 2024. The amortization of deferred acquisition costs changed in the second quarter and first six months of 2025 compared to the same periods of 2024 due to the composition of lapses across cohorts. The other expense ratio, which includes other income that is primarily related to fee-based service products, was favorable in the second quarter of 2025 compared to the same period of 2024 due to our focus on expense management and operating efficiencies. The other expense ratio was generally consistent for the first six months of 2025 compared to the same period of 2024.
Unum US Group Life and Accidental Death and Dismemberment Operating Results
Shown below are financial results and key performance indicators for Unum US group life and accidental death and dismemberment.
| (in millions of dollars, except ratios) | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Three Months Ended June 30 · Six Months Ended June 30 | |||||||||||
| 2025 · % Change · 2024 · 2025 · % Change · 2024 | |||||||||||
| Adjusted Operating Revenue | |||||||||||
| Premium Income | |||||||||||
| Group Life | $470.0 | 5.0% | $447.5 | $936.2 | 5.2% | $890.1 | |||||
| Accidental Death & Dismemberment | 49.2 | 6.0 | 46.4 | 97.4 | 5.6 | 92.2 | |||||
| Total Premium Income | 519.2 | 5.1 | 493.9 | 1,033.6 | 5.2 | 982.3 | |||||
| Net Investment Income | 21.1 | (6.2) | 22.5 | 39.3 | (11.7) | 44.5 | |||||
| Other Income | 0.4 | N.M. | 0.1 | 0.5 | (54.5) | 1.1 | |||||
| Total | 540.7 | 4.7 | 516.5 | 1,073.4 | 4.4 | 1,027.9 | |||||
| Benefits and Expenses | |||||||||||
| Policy Benefits | 361.5 | 5.7 | 341.9 | 739.1 | 6.5 | 694.2 | |||||
| Policy Benefits - Remeasurement Loss (Gain) | 0.6 | 103.2 | (18.8) | (20.3) | (46.4) | (37.9) | |||||
| Commissions | 47.5 | 11.2 | 42.7 | 94.5 | 12.0 | 84.4 | |||||
| Deferral of Acquisition Costs | (12.1) | 15.2 | (10.5) | (23.7) | 12.9 | (21.0) | |||||
| Amortization of Deferred Acquisition Costs | 9.6 | (5.9) | 10.2 | 15.7 | (8.2) | 17.1 | |||||
| Other Expenses | 63.4 | 2.4 | 61.9 | 128.7 | 4.5 | 123.2 | |||||
| Total | 470.5 | 10.1 | 427.4 | 934.0 | 8.6 | 860.0 | |||||
| Adjusted Operating Income | $70.2 | (21.2) | $89.1 | $139.4 | (17.0) | $167.9 | |||||
| Operating Ratios (% of Premium Income): | |||||||||||
| Benefit Ratio | 69.7% | 65.4% | 69.5% | 66.8% | |||||||
| Other Expense Ratio | 12.2% | 12.5% | 12.5% | 12.5% | |||||||
| Adjusted Operating Income Ratio | 13.5% | 18.0% | 13.5% | 17.1% | |||||||
| Persistency: | |||||||||||
| Group Life | 89.7% | 92.1% | |||||||||
| Accidental Death & Dismemberment | 88.3% | 91.6% | |||||||||
| N.M. = not a meaningful percentage | |||||||||||
Premium income increased in the second quarter and first six months of 2025 compared to the same periods of 2024 due to prior period sales and in-force block growth, partially offset by lower persistency. Net investment income was lower in the second quarter and first six months of 2025 compared to the same periods of 2024 due to a lower level of invested assets. Also impacting the comparison for the second quarter of 2025 compared to the same period of 2024 is a decrease in the yield on invested assets.
The benefit ratio was unfavorable in the second quarter and first six months of 2025 compared to the same periods of 2024 due to higher average claim size in our group life product line and less favorable waiver of premium benefits experience, partially offset by lower incidence in our group life product line. The unfavorability for the second quarter of 2025 compared to the same period of 2024 is also partially offset by lower incidence and lower average claims size in our accidental death and dismemberment product line.
Commissions and the deferral of acquisition costs were higher in the second quarter and first six months of 2025 compared to the same period of 2024 due to prior period sales. The amortization of deferred acquisition costs decreased in the second quarter and the first six months of 2025 compared to the same periods of 2024 due to the composition of lapses across cohorts. The other expense ratio was favorable in the second quarter of 2025 compared to the same period of 2024 due to our focus on expense management and operating efficiencies. The other expense ratio was generally consistent during the first six months of 2025 compared to the same period of 2024.
Unum US Supplemental and Voluntary Operating Results
Shown below are financial results and key performance indicators for Unum US supplemental and voluntary product lines.
| (in millions of dollars, except ratios) | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Three Months Ended June 30 · Six Months Ended June 30 | |||||||||||
| 2025 · % Change · 2024 · 2025 · % Change · 2024 | |||||||||||
| Adjusted Operating Revenue | |||||||||||
| Premium Income | |||||||||||
| Voluntary Benefits | $234.5 | 5.2% | $222.9 | $468.6 | 5.1% | $445.8 | |||||
| Individual Disability | 166.7 | 17.2 | 142.2 | 335.4 | 18.0 | 284.2 | |||||
| Dental and Vision | 81.1 | 9.4 | 74.1 | 162.0 | 9.2 | 148.4 | |||||
| Total Premium Income | 482.3 | 9.8 | 439.2 | 966.0 | 10.0 | 878.4 | |||||
| Net Investment Income | 59.5 | 3.8 | 57.3 | 116.2 | 1.5 | 114.5 | |||||
| Other Income | 1.0 | 66.7 | 0.6 | 16.8 | N.M. | 1.5 | |||||
| Total | 542.8 | 9.2 | 497.1 | 1,099.0 | 10.5 | 994.4 | |||||
| Benefits and Expenses | |||||||||||
| Policy Benefits | 234.8 | 7.8 | 217.9 | 466.9 | 9.7 | 425.7 | |||||
| Policy Benefits - Remeasurement Gain | (0.8) | (86.9) | (6.1) | (10.1) | (61.7) | (26.4) | |||||
| Commissions | 92.4 | 12.5 | 82.1 | 186.0 | 15.7 | 160.8 | |||||
| Deferral of Acquisition Costs | (57.4) | 2.9 | (55.8) | (114.4) | 2.1 | (112.1) | |||||
| Amortization of Deferred Acquisition Costs | 46.3 | (1.1) | 46.8 | 95.0 | (0.3) | 95.3 | |||||
| Other Expenses | 104.3 | 7.5 | 97.0 | 211.7 | 9.0 | 194.3 | |||||
| Total | 419.6 | 9.9 | 381.9 | 835.1 | 13.2 | 737.6 | |||||
| Adjusted Operating Income | $123.2 | 6.9 | $115.2 | $263.9 | 2.8 | $256.8 | |||||
| Operating Ratios (% of Premium Income): | |||||||||||
| Benefit Ratios: | |||||||||||
| Voluntary Benefits | 44.3% | 45.1% | 44.2% | 39.5% | |||||||
| Individual Disability | 40.3% | 39.0% | 37.9% | 40.0% | |||||||
| Dental and Vision | 77.7% | 75.3% | 75.7% | 73.9% | |||||||
| Other Expense Ratio | 21.6% | 22.1% | 21.9% | 22.1% | |||||||
| Adjusted Operating Income Ratio | 25.5% | 26.2% | 27.3% | 29.2% | |||||||
| Persistency: | |||||||||||
| Voluntary Benefits | 76.4% | 76.3% | |||||||||
| Individual Disability | 88.0% | 89.0% | |||||||||
| Dental and Vision | 82.4% | 81.1% | |||||||||
| N.M. = not a meaningful percentage | |||||||||||
Premium income was higher in the second quarter and first six months of 2025 compared to the same periods of 2024 due to the continued impacts from the recapture of a previously ceded block of business in the individual disability product line in the first quarter of 2025, favorable persistency in the voluntary benefits and dental and vision product lines, and higher prior period sales in the voluntary benefits and individual disability product lines. Net investment income increased in the second quarter and first six months of 2025 compared to the same periods of 2024 primarily due to an increase in the yield on invested assets and an increase in the level of invested assets. Other income was generally consistent in the second quarter of 2025 compared to the same period of 2024 and was higher in the first six months of 2025 compared to the same period of 2024 due primarily to a gain on the recapture of a previously ceded block of business in the individual disability product line.
The benefit ratio for voluntary benefits was favorable in the second quarter of 2025 compared to the same period of 2024 due to favorable benefit experience in the critical illness and hospital indemnity products, partially offset by unfavorable benefit experience in the life and accident products. The benefit ratio for voluntary benefits was unfavorable in the first six months of 2025 compared to the same period of 2024 due to unfavorable benefit experience in the critical illness, accident, and hospital indemnity products. The benefit ratio for the individual disability product line was unfavorable in the second quarter of 2025 compared to the same period of 2024 due primarily to lower recoveries. The benefit ratio for the individual disability product line was favorable in the first six months of 2025 compared to the same period of 2024 due primarily to higher recoveries. The benefit ratio for the dental and vision product line was unfavorable in the second quarter and first six months of 2025 compared to the same periods of 2024 due primarily to higher claims incidence.
Commissions were higher in the second quarter and first six months of 2025 compared to the same periods of 2024 due primarily to the continued impacts from the recapture of a previously ceded block of business in the individual disability product line in the first quarter of 2025. The deferral of acquisition costs and the amortization of deferred acquisition costs were generally consistent in the second quarter and first six months of 2025 compared to the same periods of 2024. The other expense ratio was favorable in the second quarter and first six months of 2025 compared to the same periods of 2024 due to our focus on expense management and operating efficiencies.
Sales
| (in millions of dollars) | ||||||
|---|---|---|---|---|---|---|
| Three Months Ended June 30 | Six Months Ended June 30 | |||||
| 2025 | % Change | 2024 | 2025 | % Change | 2024 | |
| Sales by Product | ||||||
| Group Disability and Group Life and AD&D | ||||||
| Group Long-term Disability | $45.1 | (30.4)% | $64.8 | $88.2 | (26.1)% | $119.4 |
| Group Short-term Disability | 39.3 | (7.1) | 42.3 | 71.2 | (9.0) | 78.2 |
| Group Life and AD&D | 77.2 | (5.7) | 81.9 | 121.6 | (2.5) | 124.7 |
| Subtotal | 161.6 | (14.5) | 189.0 | 281.0 | (12.8) | 322.3 |
| Supplemental and Voluntary | ||||||
| Voluntary Benefits | 62.2 | (21.8) | 79.5 | 185.1 | (1.2) | 187.4 |
| Individual Disability | 23.4 | (8.2) | 25.5 | 47.1 | 0.9 | 46.7 |
| Dental and Vision | 15.2 | (20.8) | 19.2 | 26.7 | (13.6) | 30.9 |
| Subtotal | 100.8 | (18.8) | 124.2 | 258.9 | (2.3) | 265.0 |
| Total Sales | $262.4 | (16.2) | $313.2 | $539.9 | (8.1) | $587.3 |
| Sales by Market Sector | ||||||
| Group Disability and Group Life and AD&D | ||||||
| Core Market (< 2,000 employees) | $95.2 | (19.1)% | $117.7 | $166.1 | (14.8)% | $195.0 |
| Large Case Market | 66.4 | (6.9) | 71.3 | 114.9 | (9.7) | 127.3 |
| Subtotal | 161.6 | (14.5) | 189.0 | 281.0 | (12.8) | 322.3 |
| Supplemental and Voluntary | 100.8 | (18.8) | 124.2 | 258.9 | (2.3) | 265.0 |
| Total Sales | $262.4 | (16.2) | $313.2 | $539.9 | (8.1) | $587.3 |
Group sales decreased during the second quarter and first six months of 2025 compared to the same periods of 2024 due to lower sales to existing customers in the large case market, which we define as employee groups with greater than 2,000 employees, lower sales to new customers in the core market, as well as the impact of no sales of our medical stop-loss product in the first six months of 2025 as it was no longer actively marketed as of the third quarter of 2024. Partially offsetting the comparison for the second quarter of 2025 compared to the same period of 2024 was higher sales to new customers in the large case market. The sales mix in the group market sector for the first six months of 2025 was approximately 59 percent core market and 41 percent large case market.
Voluntary benefits sales decreased during the second quarter and first six months of 2025 compared to the same periods of 2024 due primarily to lower sales to new and existing customers in the large case market. Partially offsetting the comparison for the first six months of 2025 compared to the same period of 2024 is higher sales to new and existing customers in the core market. Individual disability sales, which are primarily concentrated in the multi-life market, decreased in the second quarter of 2025 compared to the same period of 2024 due to lower sales to new and existing customers. Individual disability sales increased during the first six months of 2025 compared to the same period of 2024 primarily due to higher sales to new customers. Dental and vision sales decreased during the second quarter and first six months of 2025 compared to the same periods of 2024 due primarily to lower sales to new customers.
We remain committed to offering consumers a broad set of financial protection benefit products at the worksite. During 2025, we will continue to invest in a unique customer experience defined by simplicity, empathy, and deep industry expertise through the increased utilization of digital capabilities and technology to enhance enrollment, underwriting, the client administration experience, and claims processing. In addition, we will focus on strategically driven sales by enhancing the connectivity, alignment, and support for brokers and technology partners, including integration with human capital management systems. With respect to smaller employers, we will continue to provide a comprehensive set of consumer-focused products, enhance our distribution model, and utilize our digital tools to bring industry leading enrollment capabilities and a fully integrated customer experience. Our differentiated offerings and market leading leave management services provide substantial growth opportunities, particularly with larger employers, and stronger persistency in our core products. We believe our active client management, integrated customer experience across our product lines, and strong risk management, will enable us to continue to grow our market over the long-term.
We expect strong adjusted operating income in 2025 with premium growth driven by new sales and persistency. We expect the group disability market to remain competitive which may impact our pricing and renewal premium levels. We expect strong group disability claim experience to continue in 2025, driven by operational performance. We also expect group life claim experience to be mostly stable, but may experience some quarterly claims volatility. We expect a decline in our supplemental and voluntary line of business adjusted operating income following the closing of the reinsurance transaction with Fortitude Re. We expect a slight increase in our operating expense ratio as we continue to invest in our people and capabilities.
A rising interest rate environment could positively impact our yields on new investments, but could also increase unrealized losses in our current holdings. Alternatively, a declining interest rate environment could negatively impact yields on new investments, but could also reduce unrealized losses in our current holdings. Our net investment income may continue to be impacted by volatility in miscellaneous investment income.
As part of our discipline in pricing and reserving, we continuously monitor emerging claim trends and interest rates. We will continue to take appropriate pricing actions on new business and renewals that are reflective of the current environment.
We continuously monitor key indicators to assess our risks and adjust our business plans accordingly.
As previously discussed, we entered into a reinsurance agreement with Fortitude Re to cede a portion of our individual disability business. For further discussion, see “Executive Summary" contained herein in Item 2 and Note 14 of the "Notes to Consolidated Financial Statements" contained herein in Item 1.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.